Dear
Trader…
The benchmark S&P BSE Sensex gained 759.05 points or
0.96% to settle at 79,802, while the broader Nifty index closed at 24,304,
higher by 188 points or 0.78%.
Bharti Airtel was the top gainer on the broader Nifty 50
index, adding 4.4%, followed by Sun Pharma, which gained 2.9%.
Pharma firm Divi’s Lab added 3.8% after Citi reiterated a
“buy” rating on the stock, naming it the top pick in India’s
pharmaceutical sector. Divi’s led the gains among pharma stocks, which were up
around 2.4%.Cipla rose 2.5% as brokerage firm Prabhudas Lilladher upgraded
it to “buy” from “accumulate”, citing positive earnings
outlook.
The Nifty breadth remained skewed in favour of the bears with
37 stocks closing in the red. The worst losers were Adani Enterprises, Adani
Ports, SBI Life Insurance Company, SBI and NTPC while the gainers were Power
Grid Corporation, UltraTech, Hindalco Industries, Apollo Hospitals and Grasim
Industries.
Led by a 23% crash in Adani Enterprises, the combined market
capitalisation of 10 Adani stocks fell by around Rs 2.25 lakh crore to Rs 12
lakh crore, marking the conglomerate’s worst trading day since the Hindenburg
bombshell in early 2023.
Global
Markets – Geopolitical tensions and uncertainty over the
U.S. Fed’s rate cut trajectory continued affecting the global markets. The
global trade dynamics, which would potentially shift under the U.S.
President-elect Donald Trump due to the threat of U.S. tariffs, is also
influencing markets globally.
With Donald Trump winning the U.S. elections in early
November, Asian stock markets have been hit by Trump’s recent pledge for 25%
tariffs on major trading partners, including China, a key trading partner for
Asian economies.
In Asian markets, Shanghai and Hong Kong closed in the green
while Seoul and Tokyo ended in the negative territory. Shares in South Korea
were among the worst hit as the country has close trading ties with the U.S.
and China. Seoul settled 2% lower Friday.
Indian
Rupee – The Indian rupee settled at 84.4825 on Friday,
nearly flat on the day but hovering near its lifetime low of 84.5075 hit last
week. The rupee ended November with its worst monthly performance in eight
months.
Meanwhile, the dollar has been rallying, along
with the U.S. yields, since Donald Trump’s U.S. presidential election victory
earlier in November. The dollar index is up 2% in November while the 10-year
U.S. Treasury yield rose to as high as 4.50% earlier in the month, its highest
since July.
Crude
Oil – Brent crude oil slipped 0.4% on Friday to $72.13
a barrel, heading for a more than 3% weekly drop as the Israel-Hezbollah
ceasefire deal in Lebanon eased supply concerns, while gold prices gained about
1% on Friday, but were on course for their worst monthly performance since
September 2023 due to a greenback rally this month following Donald Trump’s
U.S. election victory.
Nifty futures opened at 24139 points against the previous
close of 24115 and opened at a low 24112 points. Nifty Future closed with an
average movement of 255 points and rise of around 188 points and closed 24304 points…!!
Meanwhile, large-cap-driven, broad-based rally ensued in
the domestic market, adding that discretionary sectors performed well,
benefiting from the festive season.
The pharma and healthcare sectors saw renewed growth,
supported by strong earnings and a moderation in valuations after recent
corrections.
Additionally, the anticipated slowdown in India’s Q2 GDP to
6.5% has already been reflected in Q2 corporate earnings, which the market
appears to have discounted. Meanwhile, global sentiment remained subdued due to
the appreciation of the Japanese yen, as inflation stayed above the central
bank’s tolerance level.
Technically, the
important key resistances are placed in Nifty future are at 24304 levels, which
could offer for the market on the higher side. stainability above this zone
would signal opens the door for a directional up move with immediate
resistances seen at 23373 – 23474 levels. Immediate support is placed at 24088 –
24008 levels.
Past Performance is not an Indicator of Future Returns. The
securities quoted are for illustration only and are not recommendatory. Investment
in securities market are subject to market risks. Read Disclaimer and related
all the documents carefully before investing, mentioned on www.nikhilbhatt.in
